Bonds Payable Journal Entries; Straight-Line Interest Amortization

On December 31, 2017, Green Company issued $300,000 of 15-year, ten percent bonds payable for $258,706, yielding an effective interest rate of 12 percent. Interest is payable semiannually on June 30 and December 31. Prepare journal entries to reflect (a) the issuance of the bonds, (b) the semiannual interest payment and discount amortization (straight-line interest method) on June 30, 2018, and (c) the semiannual interest payment and discount amortization on December 31, 2018.

Round answers to the nearest dollar.

General Journal
	Date	Description	Debit	Credit
(a)	12/31/17	Cash
		Bond interest expenseBonds payableCashDiscount on bonds payable
		Bond interest expenseBonds payableCashDiscount on bonds payable
		To record issuance of bonds at a discount.
(b)	06/30/18	Bond interest expenseBonds payableCashDiscount on bonds payable
		Bond interest expenseBonds payableCashDiscount on bonds payable
		Cash
		To record semiannual payment and discount amortization.
(c)	12/31/18	Bond interest expenseBonds payableCashDiscount on bonds payable
		Bond interest expenseBonds payableCashDiscount on bonds payable
		Cash
		To record semiannual payment and discount amortization.